Abcourt Fared Well with Only an Adjusted Loss of $108,774 and a Net Loss of $703,322 IN the Second Quarter
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FOR IMMEDIATE RELEASE
TSX Venture - ABI.V
February 16, 2022
ABCOURT FARED WELL WITH ONLY AN ADJUSTED LOSS OF
$108,774 AND A NET LOSS OF $703,322 IN THE SECOND QUARTER
ENDED ON DECEMBER 31, 2021
Rouyn-Noranda, Québec, Canada, February 16, 2022 Abcourt Mines Inc. (TSX-V: ABI, Berlin:
AML-BE and Frankfurt Stock Exchanges: AML-FF) ("Abcourt" or the "Corporation"), declares
results for the second quarter ended on December 31, 2021, compared to the second quarter ended on
December 31, 2020. All amounts are in Canadian dollars unless indicated differently.
HIGHLIGHTS:
Revenues of $6,244,370 for the quarte r ended December 31, 2021, compared to $8,360,494 in 2020, a 25%
decrease, justified by lower gold prices and fewer ounces of gold sold.
A net loss of $703,322 in 2021 compared to a net profit of $454,583 at December 31, 2020 explained in part
by a decrease in the number of ounces of gold sold and an increase in production costs due to absences related
to Covid-19.
Adjusted loss of $10 8,774 in 2021 compared to adjusted net income of $1,381,572 in 2020.
Cost of sales of $6, 648,137 in 2021, down 13% from $7,513,877 in 2020.
Cash of $1,031,955 as at December 31, 2021 compared to $2,454,545 as at June 30, 2021.
Gold invent ory of $l,960,197 in 2021, compared to $994,624 at December 31, 2020, an increase of 97%.
Cash cost in Q2 of $2,197 (US $1,752), compared to $1,961 (US $l,518) and all-in sustaining cots of $2,693
(US $2,147) compared to $2,221 (US $1,719) per ounce sold in 2020.
Ounces produced in 2021 were 2,103 compared to 2,730 in 2020. Ounces sold in 2021 were 2,765 compared
to 3,431 in 2020, a 23% decrease in ounces produced and a 20% decrease in ounces sold.
Sales of 400 ounces of gold from development work at Sleeping Giant Mine for a total of $903,856 in th e
2nd quarter ended December 31, 2021. No sale in the 2nd quarter of 2020.
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RECENT DEVELOPMENTS:
Advancement of drifts on levels 11, 12 and 16 and preparation of level 13 at the Elder mine to have access to
existing resources, or to discover new resources.
Rehabilitation of old drifts and advancement of new drifts on the upper levels of the Sleeping Giant mine to
have access to existing ore reserves and new zones indicated by previous and current drill holes.
NEW PROJETS TO COME:
Update of NI 43-101 resources calculations of Discovery, Flordin and Cameron Shear (50%)
Surface drilling program at the Sleeping Giant Mine.
Re-activate the Abcourt-Barvue silver-zinc project.
Construction of a trail to access the Tagami project.
NON-GAAP FINANCIAL PERFORMANCE MEASURES:
This press release presents certain fi nancial performance measure s, total cash costs per ounce of gold produced,
sustaining costs and all-in sustaining cost per ounce of gold produced which are non-International Financial Reporting
Standards (IFRS) performances measures. This data may not be comparable to data presented by other gold producers.
Non-GAAP financial performance measures should be considered together with other data prepared in accordance
with IFRS.
The adjusted net profit is a measure of performance that members of the direction use to evaluate the performance of
activities by the Corporation. Without taking into account th e accounting policies, taxation laws and the structure of
capital as these elements may potentially give a wrong represen tation of the capacity of the Corporation to generate
cash with its operation. The adjusted net profit excludes interest expenses, taxes and amortization.
The cash costs and all-in sustaining cost are common performance measures in the gold mining industry. The
Corporation reports cash cost per ounce based on ounces pr oduced. Cash cost include operating mining costs and
royalties but is exclusive of amortization and depletion and sustaining capital expenditures. The all-in sustaining costs
include costs of sales and sustaining capital expenditures and administrative costs but exclude amortization, depletion
and accretion expenses. The Corporation believes that all- in sustaining costs present a complete picture of the
Corporation’s operating performance or its ability to generate free cash flows from its operation.
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Calculations of cash cost and sustaining costs:
2021 2020
3 months 6 months 3 months 6 months
Ounces of gold sold 2,765 5,692 3,431 6,501
Costs of Sales 6,648,137 12,441,387 7,513,877 14,074,423
Amortization and depletion (556,647) (1,165,243) (784,959) (I,519,575)
Costs of other revenue (15,907) (29,821) - -
Cost of sales, excluding depreciation and
costs of other revenues 6,075,583 11,246,323 6,728,918 12,554,848
Cash cost($/ounce) 2,197 1,976 1,961 1,931
All-in sustaining costs 1,095,558 1,807,677 632,235 1,277,303
Administration charges 278,346 531,631 259,841 501,052.
Depreciation of property, plant and
equipment (5,061) (6,751) (1,951) (3,751)
Total cost of production 7,444,426 13,578,880 7,619,043 6,815,839
All-in sustaining costs ($/ounce) 2,692 2,385 2,221 2,204
Adjusted net profit for the quarter (financial measures not defined by IFRS):
2021 2020
3 months 6months 3 months 6months
Operating earnings (loss) (682,113) (68,750) 586,982 1,595,719
Adjustments:
Interest and penalties on taxes 14,631 48,069 7,680 50436
Amortization and depletion 556,647 1,165,243 784,959 1,519,575
Depreciation of property, plant and
equipment 2,061 6,751 1,951 3,751
Subtotal 573,339 1,220,063 794,590 1,573,762
Adjusted net profit (108,774) 1,151,614 1,381,572 3,169,481
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E L D E R M I N E
TABLE COMPARING RESULTS FOR THE THREE AND SIX MONTHS ENDED DECEMBER 31,
2021 AND 2020
Description Dec. 31 2021
3 months
Dec. 31 2020
3 months
Dec. 31 2021
6 months
Dec. 31. 2020
6 months
Tonnes treated 17,386 24,132 42,473 50,921
Average grade of tonnes treated (g/t AU) 3.67 3.65 4.03 3.68
Average grade of tonnes extrated 16,310 23,402 40,950 50,372
Grade of tonnes extracted (g/t AU) 3.42 3.69 3.1 3.72
Gold ounces sold 2,765 3,431 5,692 6,501
Gold ounces produced 2,103 2,730 5,374 5,738
Gold recovery % 95.86 96.09 96.03 95.10
Revenues from sale gold and silver $ 6,228,373 8,360,700 12,868,262 16,171,194
Price of gold sold $/ounce 2,253
l,796
2,437
1,886
2,261
1,799
2,487
1,924 US$/ounce
Cash cost per ounce produced $/ounce 2,197
1,752
1,961
1,518
1,976
1,572
1,931
1,494 US$/ounce
All-in sustaining costs per ounce produced $/ounce 2,692
2,147
2,221
1,719
2,385
1,898
2,203
1,705 US$/ounce
Gold and silver stock ready to be sold $ 36,513 96,040 36,513 96,040
Gold and silver inventory in circuit s 1,923,684 898,583 1,923,684 898,583
Total gold and silver inventory $ 1,960,197 994,623 1,960,197 994,623ꞏ-
Adjusted net profit (loss) $ (108,774) 1,381,572 1,151,614 3,169,481
Net profit (loss) after taxes $ (703,322) 454,583 (110,390) 1,510,221
Income tax and mining tax $ - 260,600 3,941 207,587
Deferred taxes $ - (132,000) - (132,000).
Cash flow from operating activities $ 1,806,978 2,582,882 2,504,730 4,900,496
Cash at the end $ 1,031,955 3,188,854 1,031,955 3,188,854
VARIATIONS FOR THE THREE-MONTH PERIODS ENDED ON DECEMBER 31, 2021 AND 2020
2021 2020 Var.
Tonnes treated 17,386 24,132 (38,8) %
Gold ounces produced 2,103 2,730 (29,81) %
Proceeds from sale of gold and silver $6,228,373 $8,360,700 (34,24) %
Cash cost per ounce of gold produced $2,197 $1,961 12%
All-in sustaining costs per ounce of gold produced $2,692 $2,221 21,25%
Adjusted net income $(108,774) $1,381,572
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ABOUT ABCOURT MINES INC.
Abcourt Mines Inc. is a gold producer and a Canadian e xploration company with strategically located properties in
northwestern Quebec, Canada. The Elder property has gold resources (2018). Abcourt is currently focusing on the
exploitation of the Elder mine and on the development of the Sleeping Giant mine.
In 2016, Abcourt acquired the Sleeping Giant mine and mill, located half-way between Amos and
Matagami, in Abitibi. The mill has a capacity of 700 to 750 tonnes per day. An evaluation of the mineral
resources, according to NI 43-101 was prepared in 2019 by Valère Larouche, Engineer in geology.
Measured mineral resources total 10,900 tonnes with a grade of 12.20 g/t of gold and indicated resources
total 475,625 tonnes with a grade of 11.20 g/t of gold. Inferred resources are 93,100 tonnes with a grade of
11.85 g/t of gold. A NI 43-101 feasibility study was completed in 2019 by PRB Mining Services Inc.
Probable reserves have been estimated at 339,221 tonnes with a grade of 7.8 g/t of gold (85,690 ounces).
A resource estimate for the Abcourt-Barvue property was prepared according to NI 43-101 by Jean-Pierre
Bérubé, Engineer in geology, in 2014. This estima te indicated of 8,083,000 tonnes of measured and
indicated resources with a grade of 55.45 g/t of silver and 3.06 % of zinc. A feasibility study was done in
2007, according to NI 43-101 by Roche/Genivar and an update by PRB Mining Services Inc. in 2018.
Proven and indicated resources total 8,074,162 tonnes with a grade of 51.79 g/t of silver and 2.83% zinc,
including 6,589,361 tonnes (81.6%) mineable by open pit and 1,454,801 t onnes (18.4%) mineable
underground. The feasibility study was done with the following prices: zinc at $US 1.10/lb ($CDN 1.38),
silver at $ US 16.50/oz ($CDN 20.63/oz) and a rate of exchange of $US 1.00 = CDN.
This press release was prepared by Mr. Renaud Hinse, Engin eer and President of Abcourt Mines Inc. Mr. Hinse is a
“Qualified Person” under the terms of Regulation 43-101. Mr. Hinse has approved the content and the disclosure in
this press release.
FORWARD LOOKING STATEMENTS
This news release contains forward-looking statements that include risks and uncertainties. When used in this news
release, the words "estimate" , "project", "anticipate", "expect", "inte nd", "believe", "hope", "may" and similar
expressions, as well as "will", "shall" and ot her indications of future tense, ar e intended to identify forward-looking
statements. The forward-looking statements are based on current expectations and apply only as of the date on which
they are made. Except as may be required by law, the Corporation undertakes no obligation and disclaims any
responsibility to publicly update or revise any forward-looking statements or information, whether as a result of new
information, future events or otherwise.
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The factors that could cause actual results to differ materially from those indicated in such forward-looking statements
include changes in the prevailing price of gold, the Cana dian-United States exchange rate, grade of ore mined and
unforeseen difficulties in mining operations that could affect revenue and production costs. Other factors such as
uncertainties regarding government regulations could also a ffect the results. Other risks may be set out in Abcourt’
annual and periodic reports. The forward-looking information co ntained herein is made as of the date of this news
release.
For more information on Abcourt Mi nes inc., please consult our website www.abcourt.com and our profile on
SEDAR www.sedar.com
Renaud Hinse, President and CEO
T : 819 768-2857 450 446-5511
F : 819 768-5475 450 446-3550
Email: [email protected]
Dany Cenac Robert, Investor Relations
Reseau ProMarket Inc.,
T: (514) 722-2276 post 456
The TSX Venture Exchange and its regulatory service provid er (as defined in the polic ies of the TSX Venture
Exchange) assumes no responsibility for the adequacy or accuracy of this press release.